Assume an attorney who has worked with a large law firm decides ...

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Assume an attorney who has worked with a large law firm decides to leave to establish his own practice.
 
  Even though he is not leaving the company with any physical assets what might be his most important asset? What factors might impede his ability to use this asset and why?

Question 2

If the GDP deflator in the United States is 114, and the GDP deflator in Ukraine is 142, which of the following exchange rates would the theory of purchasing power parity predict in the long run? (The Ukrainian currency is the hryvnia.)
 
  A) 0.80 hryvnias per dollar B) 1.25 hryvnias per dollar
  C) 2.80 hryvnias per dollar D) 28 hryvnias per dollar

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Answer to Question 1

Even though he is not leaving the law firm with any physical assets he has certainly gained experience with the firm in the form of human capital. He also has contacts with his previous clients. One factor that might impede his ability to use this asset would be if he signed a non-compete contract with his previous employer or otherwise promised not to solicit business from their clients for a certain period of time.

Answer to Question 2

B